One minute they love you. The next minute, they dont. At
times, customer loyalty can be tough to pin down. How do you know if customers
shop at your store because they adore you, or because you just happen to have
the lowest prices this week?
Are you a mere fad or do you have a strong, loyal
customer base? Whatever the case may be, there are some retailers who consistently
maintain long-term customer loyalty regardless of economic conditions.
Recently, Milford, Ohio-based COLLOQUY introduced its Retail
Loyalty Index, featuring results from 3,000 U.S. consumers in six demographic
segments: young adults, women, seniors, affluent households, Hispanics and a
general population control group. Check out the not-so-surprising results below:
-Costco received the most customer loyalty in the grocery
category, followed closely by Publix and H-E-B. -Costco was also the Personal Care retailer favorite, with
Wal-Mart close behind. -Rite Aid won in the standalone pharmacy category. -Macys had the most loyal shoppers for department stores,
followed by Wal-Mart, and a tie between Target and J.C. Penney. -Costco won in the mass merchant category, with Target and
Wal-Mart immediately following.
Whats interesting is
that while Wal-Mart rules in shopping frequency, it didnt win top honors
(although it certainly came in a close second or third) in loyalty. Could it be
that super low prices dont necessarily translate into customer loyalty?
Rick Ferguson, COLLOQUY’s editorial director had this to say about the
survey, "The survey results demonstrate that the traditional marketing mix
has taken a backseat to a relentless focus on price. A marketing strategy
focused solely on sale prices and promotions not only faces diminishing
returns, but can also actually breed disloyal customers. Our research results
demonstrate that retail marketers have an opportunity to shift their focus from
EDLP (everyday low prices) towards loyalty drivers that build true customer
engagement, larger transactions and improved margins."
Amen, Rick. Costco is certainly not the low-price leader, but they do
maintain high customer loyalty. Why? Theyre consistent, customer-centered and
they cater to Americans obsession with size--we just love having a lot of
stuff in extra large quantities. We cant help it. And Costco knows this. Besides,
theres something really enticing about buying a 40-gallon jar of peanut butter filled pretzels.
So who are you most loyal to? For me, its Target. The best gift I can ever
get is a gift card to Target (hint, hint). Why? I can get everything
there--clothes, makeup, dishes and furniture. Its fairly inexpensive and the
quality is consistently solid.
How about you--what retailer are you most loyal to? Leave your comments
here.
--Heather Strang |